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Market Volatility: Stocks Flatten as Powell's Remarks Weigh on Gains

The stock market experienced a turbulent session on Wednesday, ultimately closing near flat after Federal Reserve Chair Jerome Powell's comments on monetary policy and inflation concerns. The S&P 500 ended nearly unchanged , giving back earlier gains as investors digested Powell’s remarks on the Fed’s stance regarding interest rates and economic restraint. Powell reiterated that the central bank remains cautious about inflation, particularly in light of tariff-driven price increases expected over the summer. While the Fed signaled that borrowing costs are likely to decline this year, the pace of future rate cuts appears to be slowing.  Following Powell’s speech, U.S. Treasury yields reversed their earlier declines , influencing market sentiment. The Dow Jones Industrial Average fell 43.83 points (0.10%) , while the Nasdaq Composite managed a slight gain of 23.66 points (0.12%).  Investors also kept a close eye on geopolitical developments, particularly tensions in the Midd...
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U.S. Credit Rating Downgraded as Debt Concerns Mount

Moody’s has officially downgraded the United States’ credit rating from Aaa to Aa1, citing concerns over rising debt and growing interest costs. This marks the end of an era, as Moody’s was the last major ratings agency to maintain a triple-A rating for U.S. sovereign debt.

The downgrade follows years of fiscal deficits and political gridlock, with successive administrations failing to implement measures to curb spending and stabilize the nation’s financial outlook. Moody’s noted that federal deficits are expected to widen, reaching nearly 9% of GDP by 2035, up from 6.4% in 2024. 

The decision has sparked debate among policymakers, with some viewing it as a wake-up call for fiscal responsibility, while others criticize the move as an overreaction. The White House has pushed back against the downgrade, arguing that the U.S. economy remains resilient and that efforts to balance the budget are underway.

Despite the downgrade, Moody’s emphasized that the U.S. retains exceptional credit strengths, including the size and dynamism of its economy and the global role of the U.S. dollar. However, the agency warned that without significant policy changes, the nation’s debt burden could continue to rise, potentially impacting future economic stability.

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